Colombia's Ministry of Mines and Energy has published a draft decree to overhaul the regulatory framework for the natural gas market.
The document, led by Minister Edwin Palma, aims to strengthen supply, ensure availability and set new price formation rules during shortages. It amends Decree 1073 of 2015 and introduces changes to commercialization, imports, contracts and the secondary market.
A “Situación de Estrechez en la Oferta” is defined when the supply index reflects insufficiency between national production and total demand. In such cases, caps on price increases are proposed for interruptible contracts and secondary market operations.
The draft includes definitions for imported gas and requires firm contracts subject to conditions to become binding only after a “Declaración de Suministro Vinculante”. Producers and marketers must periodically update data on production and imports.
Palma noted that in recent years some interruptible contract prices rose more than 100 percent, pushing up costs for end users. The project seeks to curb speculative intermediation and safeguard supply during tight periods.
